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DEDUCTION U/S 80 - C

25 May 2007

Dear members, can u pls. tell me tha whether I can claim deduction u/s 80-C regarding premium on LIC if it is due in previus year i.e in 2006 - 2007 but paid late in the year 2007- 2008, while filling the income tax return for the year ending 31st march 2007. Premium deposited before filling the reurn.

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18 Replies

(Guest)

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Rajesh Bajaj (433 Points)
Replied 25 May 2007

Investments/deposits are qualified on payment basis – The aforesaid sums qualify for the purpose of this section, on ‘payment’ basis. It, therefore, follows that payments made under the aforesaid heads during the financial year are qualified for the purposes of this section, regardless of the fact that whether the payments relate to the previous year or years preceding or ensuing previous year.

Taroon Sharda (Job) (125 Points)
Replied 25 May 2007

u mean to say that in current year I can claim deduction of two premium payments i.e late premium paid and to be paid before 31.03.2008
pls. reply.

Rajesh Bajaj (433 Points)
Replied 25 May 2007

For Ay 2008-2009 you are allowed Two type of payments late payment or Normal payment which is paid in FY 2007-2008

Raj Kr.Goyal (CA) (58 Points)
Replied 26 May 2007

Dear, u can claim both of payment paid in FY 2007-08. As per Sec 80c deduction claim if premium ( including Arrers of premium )paid on Lic of assessess,spouce or child or HUF for his family memberalso, deduction claim upto 20% of the sum assured.

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(Guest)

yes you can claim the deduction of LIC payments that pertains to earlier years

The Chartered Accountant ( ) (125 Points)
Replied 28 May 2007

who are those corporates coming under section 11, Can any one tell me pls

(Guest)

Require Deduction u/s 80 c - Details

Vk Duggal (320 Points)
Replied 25 June 2007

please note that interest payment on late payment of premia will not be eligible for deduction u/s 80c. payment subject to limit of 20% of sum assured can be claimed.